2 Stocks That Could Enrich Investors in 2024

Investing is never without its share of risks, but certain companies stand out with a stronger chance of rewarding their investors in the foreseeable future. Given the present economic climate, a couple of high-quality companies seem primed to succeed.

Walmart

Amidst heightened inflation, consumers flock to economical options, a trend that works in Walmart's favor. With its competitive pricing attracting price-sensitive customers, Walmart is seeing its profits increase during these tough times.

Walmart's immense network, which encompasses over 10,500 stores and yields about $648 billion in yearly revenue, gives it leverage to negotiate favorable terms with suppliers. This, combined with a vast selection of affordable groceries and household items, is a major draw for customers.

The company's profit margins are also set to outpace sales growth. Investments in automation and technology are increasing the efficiency of its fulfillment centers. As disclosed by CFO John Rainey, the company has cut fulfillment costs by 20% over the past year. Further investments in AI and drone technology should continue to bolster Walmart's profit margins.

Additionally, Walmart's acquisition of smart-TV brand Vizio for $2.3 billion is poised to enhance its digital advertising capabilities, adding valuable data collection and ad targeting to its repertoire. Walmart's ad sales have seen a significant uptick, marking a 28% growth to $3.4 billion in 2023.

Nvidia

With AI transforming industries, the demand for AI-enabling hardware is surging. This is good news for Nvidia, the semiconductor giant responsible for creating chips that power sophisticated AI applications.

Industry front-runners such as Microsoft, Alphabet, Meta Platforms, and Tesla are among the companies utilizing Nvidia's chips. Consequently, Nvidia's sales and profits are experiencing impressive growth, with revenue jumping 126% to $61 billion, while adjusted net income soared to $32 billion—a 286% increase for a company valued at $2.2 trillion.

Nvidia's CEO, Jensen Huang, anticipates a sustained demand for AI chips as data centers move toward GPUs which are adept at handling AI tasks. To meet this demand, Nvidia has announced a new lineup of potent GPUs and AI chipsets, with their Blackwell processors expected to deliver significant performance improvements over the widely-used Hopper chips.

Furthermore, Nvidia's newly introduced software solutions, tailored to support AI models across various platforms, could prompt clients to view Nvidia as a go-to AI platform, further distinguishing the company's AI solutions from the competition.

Walmart, Nvidia, Investment